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Entrepreneurial Intention of Unemployed People and the Need for Training and Financial Support for Self-Employed Workers in Times of COVID-19

Abstract:

The COVID-19 pandemic caused a severe economic crisis that has led to instability in the labor market. Some workers fell into unemployment and self-employed workers had to face a partial or total stoppage of their activities. This paper aims to study the entrepreneurial intention of unemployed people and the need for training and financial support of self-employed workers. To do so, Probit models are estimated using a survey with workers in Ecuador. The results show that the underlying characteristics that motivate entrepreneurial intention differ across existent unemployed people and people who became unemployed during the COVID-19 lockdown. Women who became unemployed during the COVID-19 lockdown are more likely to have entrepreneurial intentions than men. Less educated existent unemployed people are more likely to have entrepreneurial intentions than more educated ones. People who need financial support also need training support and vice versa. The level of the effects of COVID-19 on economic sectors has a relevant effect on the need for financial support.